Discussion in 'Mopar / FCA News' started by Dave Z, Mar 2, 2016.
Well humor me then. Why would he sell off Jeep and Ram?
Certainly not where I was going with my response, of course he would if he had to my response had more to do with VW & Hyundai being held in the "high" esteem both problem riddled companies are being held
I've said this before. Ask why would he sell the good stuff and keep the rest? I think the deal is all or nothing. If he can't get that, he collaborate with partners when it makes sense. Financially, everything is manageable at the moment, if things start to go down hill anything is possible.
Ahhh ok. I was not saying that VW and Hyundai were held in high esteem by me. All I was saying that those companies product line in the US has no trucks or big SUVs. I was saying that it would make more sense for someone like them to buy Jeep and Ram. Also both VW and Hyundai have a wide selection of 4s V6s and V8s that could power them.
Fiat has purchased Maserati, Alfa Romeo, and Chrysler.
They spun off Ferrari as its own company, and split from Fiat Industrial/Case New Holland.
What companies have they sold?
Again, why would he sell his money makers? If the company is merged, it'd be all or none.
Sergio's first loyalty is to Fiat Europe. If things get bad enough he will do anything to save Fiat. He made need the cash from a Jeep/Ram sale if things get worse. Do many people on here think it has been a good idea to bring Alfa and Maserati to the US? He has angered and bankrupted a ton of Fiat dealers with promises of tons on new product that has not arrived. He may still pull off what he has planned, but I dont think he will be able to do it and he will cause a lot of pain when he has to find a way out. I sure hope that is not what happens of course.
Your assumption is his first loyalty is to Fiat Europe.
Part two: He would not sell Jeep or Ram unless he was winding down the company as a whole which will not happen
He wouldn't have anything left to build on. W
Right, he has been working on expanding Jeep and RAM in Europe. He would never waist money on the longer term position of expanding into Europe if he was wanting to sell them off.
Don't forget he tried to sell Fiat to GM in the early 2000s. Have you read his 'Confessions of a Capital Junkie'? It convinced me that he and EXOR would be more than willing to exit this industry at a profit and pursue other endeavors that promise a better return and less risk. I agree he may not find a buyer, but when an enterprise that sells 5 million cars is dangled on a fishing line, there is a chance. Even if the whole world ends, I still think selling off just RAM and Jeep is a bad idea, but all bets are off. They could do anything.
He didn't try to sell Fiat to GM. He threatened GM he will make them buy Fiat in order to get a nice payday. He was not involved with the original deal.
Zuou mist bt foonh better drugsgs tha?n i,waS given,in ftje ho$ñita.,l,z for pain
Not on pain killers, but the doctor wanted to put me on anti-psychotics. I told him I'm not crazy, it's everyone else.
Sounds interesting. I admit I don't know the whole story. Will have to read up on it one day, but if he threatened GM to force a buyout of Fiat he was willing to sell. My guess is selling instead of the big payday is what he wanted.
Please do not fall in this forums trap to put Jeep and Ram together. I do not know who started this but the Agnellis and Marchionne are only interested in Jeep.
Ram is not important, it is a way to sell Fiat Professional vans in NA. The rest of the world is not waiting for big American trucks.
Ram will be absorbed into Fiat Professional or Iveco or just disappear if ever the petrol prices go up again.
Same goes for Chrysler, not important in the story. Dodge will go on with cheap petrol but after that, is anybodies guess.
The Agnellis and Marchionne together with their friends from the investment funds Vanguard International and Oakmark Funds and some help from Harris Associates, they have been after Jeep all the time.
They want to turn Jeep into a big global happening.
Do remember that FCA is only 2 years old, in the beginning of 2014 Marchionne finally got his hands on the VEBA shares and spend the rest of 2014 with his international and national lawyer team to put the framework in place that was lying on the shelve.
Last year saw the separation of Ferrari, because proud Italians would never want Ferrari to be associated with the US.
This last week we saw the final adjustment with press and newspaper investments that were still under FCA.
Now that the debt covenants thing is settled, Fiat has free access to all the cash funds worldwide.
That is why you see this year and probably the next 2-3 years the money being put into Fiat and Alfa Romeo.
Maybe Lancia will be taken out of the waiting room, but that would be more like 5-6 years i think.
The reason the Agnellis and the investment funds wanted the Chrysler Group was Jeep.
And they will run with it and finally turn it into a worldwide wonder.
The Agnelli family has got access to enormous funds for all sorts of sources, so to think that they are in financial trouble is pure nonsense.
OK, humor me and tell me about the engines Hyundai and VW had suitable for a Jeep Grand Cherokee or Ram 1500 to replace the 5.7 Hemi.
Then what's the story about "RAM International"?
It's not "this forums trap." I won't disagree that Jeep is the crown jewel, but it's worth noting that the guy in charge of Jeep is now also the guy in charge of RAM, and I don't think that was by accident.
RAM is very important to FCA as a whole and what it represents in sales to the company in one of the largest markets in the world. To dismiss it's importance would be foolish.
I think you need to make a distinction between:
Ram plastic name plate on a vehicle
marketing technique: is the name "Ram International" better than "Fiat Professional"
Dodge truck technical knowledge
The Ram trucks are too big for most countries and their roads, Ram trucks are only good for NA.
If Hegbloom gets back from his world trip and can convince the management team that the Ram name is the best, they will go for it. But that is just the name, not physical trucks.
The reason Manley is in charge is indeed to absorb that Dodge truck knowledge into Jeep, but also Fiat-Iveco.
If you accept that the Agnellis will never let go of Jeep it makes perfect sense to take that part of Dodge knowledge and keep it.
Dodge as a make will be the sport brand in NA with Vipers and Challengers and the rest of it.
Marchionne is a speed freak and i am sure in his retirement will just run Ferrari till his dying day.
As long as people keep on buying Dodge vehicles he will make them. The more Hellcats, the better.
But if there is an economic downturn the Agnellis and Marchionne will send workers home, mothball factories and cut costs.
They have done it under Marchionne in Italy and Poland. And are doing it with the 200 now in the US.
That is the way they run the show.
If you look how much money the Agnellis have made in NA and how much it has cost them to penetrate the NA market.
You can only admire the management decision to buy Chrysler group for $1.
Compare that with any European car company who has come to NA and how much money they have lost in the process (mercedes)
Are any trucks named Fiat Professional? I thought their trucks were named Iveco?